Header

UZH-Logo

Maintenance Infos

Offshoring and directed technical change


Acemoglu, Daron; Gancia, Gino; Zilibotti, Fabrizio (2015). Offshoring and directed technical change. American Economic Journal: Macroeconomics, 7(3):84-122.

Abstract

We study the implications of offshoring on innovation, technology, and wage inequality in a Ricardian model with directed technical change. Profit maximization determines both the extent of off-shoring and the direction of technological progress. A fall in the offshoring cost induces technical change with an ambiguous factor bias. When the initial cost of offshoring is high, an increase in offshoring opportunities causes a fall in the real wages of unskilled workers in industrial countries, skill-biased technical change and rising skill premia. When the offshoring cost is sufficiently low, instead, offshoring induces technical change biased in favor of the unskilled workers.

Abstract

We study the implications of offshoring on innovation, technology, and wage inequality in a Ricardian model with directed technical change. Profit maximization determines both the extent of off-shoring and the direction of technological progress. A fall in the offshoring cost induces technical change with an ambiguous factor bias. When the initial cost of offshoring is high, an increase in offshoring opportunities causes a fall in the real wages of unskilled workers in industrial countries, skill-biased technical change and rising skill premia. When the offshoring cost is sufficiently low, instead, offshoring induces technical change biased in favor of the unskilled workers.

Statistics

Citations

7 citations in Web of Science®
9 citations in Scopus®
Google Scholar™

Altmetrics

Downloads

62 downloads since deposited on 03 Nov 2014
36 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:2015
Deposited On:03 Nov 2014 12:02
Last Modified:18 May 2016 15:30
Publisher:American Economic Association
ISSN:1945-7715
Publisher DOI:https://doi.org/10.1257/mac.20130302
Related URLs:https://www.aeaweb.org/forthcoming/output/accepted_MAC.php

Download

Preview Icon on Download
Preview
Content: Accepted Version
Filetype: PDF
Size: 613kB
View at publisher

TrendTerms

TrendTerms displays relevant terms of the abstract of this publication and related documents on a map. The terms and their relations were extracted from ZORA using word statistics. Their timelines are taken from ZORA as well. The bubble size of a term is proportional to the number of documents where the term occurs. Red, orange, yellow and green colors are used for terms that occur in the current document; red indicates high interlinkedness of a term with other terms, orange, yellow and green decreasing interlinkedness. Blue is used for terms that have a relation with the terms in this document, but occur in other documents.
You can navigate and zoom the map. Mouse-hovering a term displays its timeline, clicking it yields the associated documents.

Author Collaborations